What Are The Types Of Car Insurance Cover Available In The Us

By Author: merillmayden
Total Articles: 24
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There is probably no individual in the world who owns a vehicle of any sort and doesn't have an insurance policy for it. What then is a vehicle insurance policy?
In simple terms a motor insurance, also known as auto insurance and car insurance is a legal requirement in most developed countries wherein, the owner of a car, bus, truck or two-wheeler agrees to pay monthly premiums at a predetermined rate in exchange for a promise by the insurance company, that in the unforeseen and unfortunate event of an accident, collision, flood, fire, theft or any such liability, the insurance company will provide restitution.
This is a legally binding contract between the two parties and the amount and specifics of the insurance coverage provided by the company depends on the preference of the insured.
Most common types of insurance cover are vehicle liability damage, property damage liability, personal injury liability, collision coverage, medical expenses insurance, uninsured motorist insurance, under insured motorist insurance, no-fault insurance and comprehensive cover.
1. Liability Insurance Cover
There ...
... are two kinds of liability insurance;
Bodily injury liability and
Property damage liability.
Bodily injury refers to the injuries caused by the insured to other person while damage caused to someone else's vehicle or property is property damage.
If any of the above two occur then the insurance company pays for the expenses upto the amount of cover taken. In case the amount is more than the level of cover contracted for then the personal assets of the insured may be used. Therefore most people opt for a personal liability umbrella cover which will take care of even the most monstrous damages.

2. No -Fault Insurance Coverage
This kind of insurance cover ensures that if the insured is involved in any accident, where personal injury occurs then the insurance company pays for the expenses without the need to go to court and sue the party at fault for the injury. This type of insurance policy is also known as Personal Injury Protection or PIP. It only includes the expenses regarding bodily injury and not damage to the vehicle. They include hospitalization charges, medical costs, loss of wages, funeral expenses, survivor's benefits, replacement services etc.
3. Uninsured Motorist Insurance
This is a kind of insurance coverage which protects the insured against hit and run road accidents and those caused by uninsured third parties. This includes accidents while driving or walking.
4. Under Insured Motorist Insurance
This insurance cover is used when a person causes the insured damage, injury or expenses and is not insured sufficiently to pay for it.
5. Collision Insurance
When insurance cover is provided regardless of whose fault the bodily or vehicle damage caused to the insured person was. The value of the car usually decides the need for collision damage.
6. Comprehensive Cover
When an injury, vehicular damage or accident occurs due to acts of God like flood, storms, earthquakes or animals, civil riots, explosions, falling debris, fire, loss of vehicle by theft, broken glass, vandalism, sharp objects, glass breakage by other vehicles and so on, then comprehensive insurance cover is used to cover the expenses.
Finally, regardless of the insurance policy, if the insured is proved to be guilty of drunken driving, speeding or rash driving causing injury or even death then the insurance company can rescind the contract.

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